SLV Stock Today: Silver Tops $115; Hedge With Options – January 26
SLV stock is surging as the silver price today breaks above $115 per ounce, extending a powerful squeeze. The iShares Silver Trust SLV has roughly doubled since December, with momentum and volatility both rising. For Canadian investors, quotes are in U.S. dollars and FX adds another layer of risk. We review price action, technicals, and practical options collar and call spread setups to protect gains or stay engaged. With big intraday swings, trade sizing, limits, and hedges matter more than ever. We also flag liquidity and account considerations for RRSP and TFSA users.
Price action and drivers
SLV stock recently traded at $98.34, up $5.43 (+5.84%), with an intraday range of $96.51 to a record $106.70. Year low sits at $26.57. Volume hit 379,165,622 versus a 63,003,747 average, underscoring strong participation. Price stands far above the 50-day ($61.7276) and 200-day ($42.14865) averages. Market cap is $56,100,958,507 on 570,595,591 shares outstanding, confirming how large flows can move the vehicle.
The iShares Silver Trust seeks to reflect silver’s price before fees. It is not actively managed and holds bullion, so there are no earnings and no yield. Tracking can vary around NAV in fast markets. Quotes are in USD, so Canadians face currency risk on top of metal moves. Costs and spreads can widen during volatile sessions.
Risk control with options
A collar pairs a long position with a purchased put and a covered call. Many traders choose 5% to 10% out-of-the-money strikes with 4 to 8 weeks to expiry to offset put cost. This caps upside but sets a floor if momentum fades. See strategies discussed by CNBC: Silver hedging with options.
A call spread seeks upside with limited capital at risk. Buy 1 at-the-money call and sell 1 higher-strike call in the same month to reduce debit. This can keep SLV stock exposure if the squeeze extends while defining risk. For a structured approach, see IBD: Bullish call spread trade.
Technical picture and momentum
Trend strength remains elevated. RSI sits at 66.11, below classic overbought but near it, while ADX at 41.58 signals a strong trend. MACD is positive (4.92 vs 4.69 signal; 0.23 histogram). Overbought readings appear in CCI at 101.26 and Williams %R at -10.25. Money Flow Index is 66.18, showing sustained buying pressure.
Volatility is high, with ATR at 3.30 highlighting wide daily ranges. The day low at $96.51 and high at $106.70 show rapid price discovery. In such tapes, consider smaller position sizes, wider stops, and limit orders. Gaps can fail, so predefining exits and using options hedges may help contain downside if momentum snaps.
What Canadian investors should consider
SLV stock trades in USD, so CAD-based investors add FX risk and potential conversion costs. Hedged alternatives may reduce currency swings but can change tracking. RRSP and TFSA eligibility depends on your broker; SLV does not pay distributions, so U.S. withholding is not a current issue. Capital gains in taxable accounts apply. Confirm details with your provider.
Execution quality matters. Trade during U.S. market hours and use limit orders to reduce slippage when spreads widen. Consider staging entries or exits. If currency risk is a concern, review Canadian-listed silver products or bullion accounts. Match instrument choice to timeline, risk budget, and whether you need direct metal exposure or SLV stock liquidity.
Final Thoughts
Silver above $115 and SLV stock’s surge have delivered outsized gains but also greater drawdown risk. Today’s tape shows extreme volume, stretched distances from moving averages, and strong trend readings. For Canadians, USD exposure adds another moving part. A practical toolkit includes three paths: trim into strength, layer a protective collar to lock a floor, or use a defined-risk call spread to stay long with limited capital at risk. Keep positions modest, use limit orders, and predefine exits. Our Stock Grade shows B (Hold) while a fundamentals-based lens flags Sell, so balancing conviction with protection is sensible. Trade the plan, not the noise, and reassess as volatility shifts.
FAQs
What is SLV stock and how does it track silver?
SLV stock is the iShares Silver Trust, a physically backed vehicle that aims to reflect the price of silver before fees. It holds bullion and does not pay a dividend. Tracking is generally tight but can vary during volatile sessions. Quotes are in U.S. dollars for Canadian investors.
Is SLV stock a good inflation hedge for Canadians?
SLV can offer exposure to silver, which some use as an inflation hedge. For Canadians, the return also includes USD/CAD moves. That can help or hurt results. If you prefer fewer currency swings, consider hedged products. Always size positions modestly and review costs and liquidity.
How does an options collar work on SLV stock?
An options collar buys a protective put and sells a covered call on existing shares. Many use 5% to 10% out-of-the-money strikes with 4 to 8 weeks to expiry to offset cost. Upside is capped, but downside is defined, helping protect profits in fast markets.
Should I buy SLV stock now or wait for a pullback?
Momentum is strong, but indicators show stretched conditions and high volatility. A plan could be to scale in on weakness, use defined-risk option spreads, or apply a collar after entries. Keep position sizes small, use limit orders, and reassess if silver price today loses key support.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
